Believe it or not, these things actually impact all parts of the housing market, not just the new home sector.Again, to truly weigh the options in front of you, I would suggest having a Realtor do an evaluation for you, and give you a pro/con rundown of each option. 

Don't be so quick to indebt your paid off townhome until your learn creative financing and review all your options.

Stessa is a pretty good option but only for the management portion.

I want to make sure I'm not missing something.I can withdraw penalty free from prior Roth contributions and 5+ year old conversions, an inherited tradtional IRA, an HSA with prior medical receipts, among several other options.

I think you’re under a misconception that’s leading you to think you have options you don’t…You say it’s worth $1.1M and you’d net $500k.

You could also check out options like Cozy or TenantCloud for similar features.When converting to LTR, just keep an eye on local rental laws, lease terms, and any rent control rules that might apply.

Quote from @Patricia Steiner: There are several lenders who offer low/no closing cost options for first time homebuyers.

Homewrite is seems like it could be a good option.

If you're considering Real Estate as an option in the future, I would not add the money to either of these accounts. 

@Max Bellino For smaller properties like your 2–4 unit multifamily buildings, an online cost segregation study is a quicker and more cost-effective option, providing sufficient accuracy for straightforward properties.